Wearing a blue
suit and lighter blue tie, Dougherty, 58, squeezed and patted lawyers’ arms
before the formal arraignment, introducing himself with a smile.

U.S. Magistrate Judge
Elizabeth Hey released the union official on a $50,000 bail, noting that he
should limit his communications with potential witnesses to work-related
exchanges.

His lawyer, Henry Hockeimer, Jr. of Ballard Spahr, agreed that Dougherty – leader of the Local 98 of the International Brotherhood of Electrical Workers – would comply.

On Wednesday, federal prosecutors in the Eastern District of Pennsylvania filed a 116-count indictment accusing Dougherty – along with a city councilman, five union employees and a local business owner – of embezzling at least $600,000 from the union and its apprentice training fund. The charging document details alleged crimes between 2010 and 2016.

The indictment claims Dougherty, who has served as business manager of the Local 98 since 1993, used the union’s funds “as his personal bank account and as a means to obtain employment for himself, his family, and his friends.”

According to prosecutors, Dougherty used, and allowed others
to use, three Local 98 American Express credit cards in his name to make
personal purchases, including groceries, household supplies and meals.

Other purchases detailed in the indictment include $567 in
men’s clothing, a bed from IKEA and a washing machine. A movie theater gift
card and Disney character pillows and blankets were written off as “office
supplies,” according to the indictment.

“Under federal law, and the constitution and by-laws of the
union, these assets could only be used for legitimate business expenses of the
union,” the document states. “The leadership and other members of Local 98 were
prohibited from using the funds and other assets of Local 98 for their personal
benefit.”

Dougherty also allegedly used union funds to pay contractors
who did plumbing, roof, and wall repairs on a South
Philadelphia tavern he owns, as well as work done on his home.

He then directed subordinate employees to write off his
fraudulent expenditures as union-related purchases, prosecutors claim,
manipulating the union’s reporting and auditing requirements to hide his
thefts.

The indictment also says Dougherty hired friends and family
members and gave them raises and extra pay for hours they never worked or
time spent doing personal tasks for him.

It lists one text message exchange in which a union employee
allegedly asked Dougherty if he should water the tomatoes while he and others
washed the sidewalks in front of the union leader’s house.

“Yes!!!” Dougherty texted back enthusiastically, according
to the indictment.

In another incident, Dougherty is accused of instructing the
same employee to drive to his New
Jersey beach house and bring back samples of the pool
water.

While Dougherty and his union
were big supporters of Philadelphia Mayor Jim Kenney, Kenney said at a press
conference Wednesday that his office would not be implicated.

“We’ve had conversations
with the U.S.
attorney’s office. No one in the administration, not myself or anyone, is
involved,” Kenney said, noting that “mostly every union in the city”
supported him in the election.

Dougherty has also thrown
Local 98’s financial backing to his younger brother, Kevin Dougherty, who won a
seat on the Pennsylvania Supreme Court in 2015.